The move is seen as an effort by both sides to calm trade tensions. (Source: CNBC)
The move is seen as an effort by both sides to calm trade tensions. (Source: CNBC)

AMERICA (Enmaeya News) - October 27, 2025

The United States and China have reached an initial agreement on a new trade deal, aiming to ease tensions between the world’s two biggest economies after months of difficult talks.

The deal, announced by both governments, includes plans for China to buy more U.S. farm products and reduce limits on rare earth exports, materials used in electronics and electric cars.

In exchange, the U.S. will lower some of the tariffs placed on Chinese goods. However, most of the tariffs will stay in place until a final agreement is completed.

According to the BBC, officials from both countries said the deal is only a first step. They still need to work out key details, including how the agreement will be enforced and what penalties will apply if either side fails to meet its promises.

The move is seen as an effort by both sides to calm trade tensions that affected global markets and disrupted supply chains in recent years. U.S. farmers have faced major losses due to Chinese tariffs, while China’s factories have been affected by slower exports and higher import costs.

Reactions in both countries have been mixed. Some U.S. lawmakers say lowering tariffs too soon could weaken America’s position, while Chinese officials are wary of appearing to give in to U.S. demands.

Still, the new framework marks a step toward stability in global trade. Negotiators are expected to meet again in the coming months to finalize the agreement and address remaining issues.